Key Takeaways
- Treasury Secretary Scott Bessent announced expectations for a substantial Boeing aircraft order from China to be revealed during President Trump’s Beijing trip.
- Boeing (BA) shares climbed 1.2% during premarket hours Thursday after Bessent’s remarks on CNBC.
- Negotiations extend to increased Chinese procurement of American energy products and agricultural commodities.
- Officials from both nations are examining fresh investment frameworks, including potential “Board of Trade” and “Board of Investment” mechanisms.
- Bessent positioned the objective as equalizing trade through expanding American exports to China instead of reducing imports.
Boeing (BA) shares advanced 1.2% during Thursday’s premarket session following Treasury Secretary Scott Bessent’s disclosure to CNBC that China is anticipated to submit a substantial aircraft order with Boeing while President Donald Trump conducts his diplomatic visit to Beijing.
“I think we’re going to see the large Boeing orders,” Bessent stated during his appearance on CNBC’s “Squawk Box.”
These remarks emerged as American and Chinese representatives initiated a two-day conference aimed at recalibrating economic relations between the planet’s two most powerful economies.
The Boeing purchase is being positioned as a potential centerpiece achievement from the Beijing negotiations. Such an order would represent a notable development following an extended period of commercial tensions between the two nations.
Bessent emphasized that negotiations encompass more than just aircraft. Enhanced Chinese acquisitions of American energy resources and farm products are under consideration, alongside innovative structures for Chinese capital deployment in non-critical American industries.
Energy Imports and Capital Investment Under Discussion
Regarding energy matters, Bessent revealed that Chinese representatives have demonstrated appetite for purchasing additional American liquefied natural gas, especially as fresh export infrastructure becomes operational.
Agricultural commerce features in the dialogue as well, although Bessent observed that soybean arrangements are primarily established through current agreements.
Both governments are evaluating two novel bilateral oversight mechanisms: a “Board of Trade” and a “Board of Investment.” These structures would facilitate Chinese investment in America while avoiding national security complications.
“What we want to do is make sure that these investments don’t get referred to CFIUS,” Bessent explained, mentioning the Committee on Foreign Investment in the United States.
He additionally dismissed speculation about enormous capital pledges from Beijing. “I’m not sure where this $1 trillion investment number has come from,” he remarked.
Trade Balance Remains Primary Target
Bessent articulated the fundamental purpose behind the negotiations: achieving improved equilibrium in bilateral commerce.
“That’s the goal here, and that can be done one of two ways — either the U.S. receives fewer imports from China, or we sell more to China,” he explained. “We’re trying to balance that out.”
His comments suggested a preference for expanding American exports over imposing import limitations.
Boeing has traditionally been among the primary winners of U.S.-China commercial agreements. Airlines based in China constitute a significant portion of Boeing’s commercial aircraft customer base.
The aerospace manufacturer has navigated challenging circumstances in recent years — manufacturing complications, regulatory oversight, and inconsistent market demand have all pressured operations. A substantial Chinese purchase would deliver meaningful momentum.
Boeing (BA) shares gained 1.2% in premarket trading Thursday. The official order declaration, should it materialize, is anticipated during Trump’s ongoing Beijing visit.
